Cryptocurrency Definitions
Cryptocurrency Definitions: The word Crypto or Cryptocurrency Simply means a digital currency, not cash it’s secured on blockchain technology.
Are you wondering about the word Cryptocurrency and how can it be traded as a currency? Read this article very well.
The word Crypto or Cryptocurrency Simply means a digital currency, not as cash like gold and diamonds that you can take to the bank, yes there’s no one behind the Cryptocurrency market, price, and movement also there’s no one controlling the market even government has no power to control the Cryptocurrency market.
another fact you are the one in charge of your asset you are the one that can control your money the whole cryptocurrency is secured on blockchain technology it’s decentralized so you are the only person have power over your asset there’s nothing that can affect your asset without your notice unless you hand over or exposed your pass-phrase key to the public it means every transaction that occurs you must be the one that operates it the most amazing part of Cryptocurrency is that there’s no Tax when you are holding crypto in your wallet no matter how long will take there.
Why Does Government Have No Power to Control the Cryptocurrency
- Cryptocurrency is centralized you are the one over your asset, example today you want to buy a Rolls Royce and your money is in the bank while today is a weekend day and you must visit the bank and confirm that you want to initiate a transaction of $250,000 so you see you must have to wait for the working day before you can get to the bank and perform the transaction while you in hurry maybe it is an offer that the Rolls Royce Company offer and within some few hours the offer is gonna expired so you see it means bank are centralized you are not the one that is controlling your money the most important thing of Cryptocurrency you don’t have to wait for someone to approve your transaction before you spend it’s you and the blockchain you give it order and it executes within few minutes.
- Cryptocurrency is not owned by an individual like you and me it’s based on the blockchain while blockchain is performing what you ask it to do the blockchain will never initiate a transaction of even a cent without your notice as I said unless you exposed your pass-phrase or you got hacked by anonymous scammers.
- Cryptocurrency can only be traded on wallets and other exchanges there’s no bank involved when I say there’s no bank involved I mean we don’t need a bank to perform a transaction on Cryptocurrency we can just use our credit or debit card to purchase on the wallets or exchange that are allowed to make a purchased.
What is the difference between Wallets and exchanges?
Wallets: are decentralized it doesn’t require your personal information if you want to own a wallet like Trustwallet, Metamask Wallet, C98 Wallets, etc. all are called cold wallets when you download one of them they will provide you with twelve (12) Pass-phrase key something like these Car, bike, tree, forest, goat, smile, ran, swam, hide, jump, struggle, landscape. This twelve pass-phrase key is the unique security key that you can be used to access your asset it’s unique all you have to do is to write it down on a piece of paper or a diary and keep it in a safe place that cannot be lost this is what called Wallets.
Exchange or Exchangers: are centralized which means there’s someone that can control it eg. The transactions, conversions, staking, etc. but I know you are now questioning yourself why as I said earlier there’s no one can control it. Yeah every centralized exchange is controlled by an individual or organization Examples of centralized exchanges are Coinbase, Binance, Hotbit and Huobi, and many more, etc. before you owned an account there you must provide some of your personal information such as your:
Name
Phone number
Email address
Date of birth
Personal address
Any means of ID National ID, social security number (SSN), International passport, or state ID.
So these are examples of the information that centralized exchange required from you before you started trading.
Why do centralized exchanges require my personal information
The Centralized exchanges require their user’s Personal information in other to verify that he’s the person in action to avoid Money laundering and fraudulent activity that’s what we called it (KYC) which means “Know Your Customers”.
So actually that’s the difference between Wallets and Exchanges.
How To Purchase Cryptocurrency
If you want to purchase Cryptocurrency all you need to do is visit the exchangers that allowed you to purchase crypto such as Coinbase, Binance, Hotbit, Huobi, etc. signup there if you already have an account then log in locate the trade option check out the payment method provided if you have any one of the payment methods provided kindly proceed to type the amount that you want to buy then you follow the instruction and purchased your crypto.
Can I Purchased Crypto with my Credit or debit card
Yes, you can proceed to purchase crypto with your credit or debit card anywhere that is allowed.
Between Wallets and exchanges which one is allowed to purchase crypto
Wallets: you can easily purchase crypto with your credit or debit cards on any wallet here:
Trustwallet
Metamask
C98 Wallet etc.
These wallets allow the user to purchase crypto using credit or debit cards smoothly.
Exchanges: you can also make a purchase of crypto on those exchangers listed below:
Coinbase
Binance
Cex
Huobi
Luno
etc.
Payments method accepted by those exchangers:
Coinbase accepted Credit /debit cards Visa and Master only they also accept Paypal US-based.
Binance is almost accepting over (15) payment methods eg. Credit/debit cards, Cashapp, Skrill, Neteller, Paypal, western union cash deposit to the bank, etc. Signup here and Check it out.
Cex accepts credit/debit cards
Huobi accepts credit/debit card
Luno is also accepting credit/debit cards.
Do I have a limit to purchasing crypto?
Some exchangers have a purchasing limit may be a daily limit or weekly purchasing limit.
Example:
Binance limited every user to purchase crypto worth $50k daily for users that pass the (KYC 1)
While users that have passed the verification plus can make a purchase of $250k daily.
Coinbase also has a limit for purchasing Crypto they are increasing the purchasing limit based on your activity.
